I decided I was going to try coin cutting, so I chose a coin with a design that would cut out well, something with a figure that has distinct boundaries, not some design that is integrated into the background filling the entire coin. I chose a 10 cent piece from Singapore made in the 60s for this reason, and I thought it would look better than just cutting out a random portrait.
Step 1: Materials
The first thing you will obviously need is a coin to cut, remember that a more detailed figure will be harder to cut. If you use a fairly common non precious coin, you can find one that will have a very nice end result for maybe $2-4 with shipping.
For tools, you will see I am using a simple v block to cut the coin on made of a piece of oak. It will really help having this to support the coin as you cut it. You will see other people using a device that sort of pinches the coin while you work on it. That will save you a lot of strain, but if you hardly ever cut coins it might not be worth the investment.
The three main tools you will need for cutting it out will be a drill with some pretty small bits, a jeweler's saw, and a bunch of files. I used a dremel with a 61 gauge drill bit I think. While using the jeweler's saw, you will go through blades extremely fast. I think I snapped about 5 blades, so have extra blades, 4/0 size is probably the best. Files may be useful to help smooth things out when you are done, but I didn't have too much need for them.
I also used a bit of silver plated wire to create something to allow this to be put on a chain. I think the drill hole was about 1mm, finding a chain that thin would be a pain, so creating something to allow this coin to hang from will make this a better pendant. I used a toothpick to bend the wire around, and a pair of wire clippers to cut the ends off.